The European Central Bank (ECB) has cut its interest rates for the seventh time in a year.
The latest cut of a quarter of a percentage point takes the rate which trackers are priced off down to 2.4% having stood at 4.5% as recently as the end of 2023.
Around 130,000 tracker mortgage holders are set to benefit immediately from the latest cut, while it remains to be seen whether the seventh cut since last June will be passed on by lenders to variable mortgage customers.
It is expected that customers will save roughly €13 on their monthly repayments for every €100,000 borrowed.
The latest cut of 0.25% brings the ECB’s benchmark deposit rate down from 2.5% to 2.25%.
The ECB has been lowering borrowing costs as post-pandemic price pressures retreat and recent trade-related turmoil on global markets is adding to the case for further policy easing.
"Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions," the ECB said.
"These factors may further weigh on the economic outlook for the euro area," it added.
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